Scott invites tax-cut ideas Tuesday at local events

Gov. Rick Scott will be in South Florida Tuesday, the first two stops in a tour asking business and residents what taxes and fees they would like to see cut.

Scott has pledged to cut taxes and fees for the state by $500 million in the 2014-2015 budget, the same year he would run for re-election.

The "It's Your Money" tour is set to begin at 9:30 a.m. Tuesday in West Palm Beach at the Palm Beach County Covention Center, followed by a stop at 4 p.m. at Broward College in Fort Lauderdale. Scott will then stop in Jacksonville, Tampa and Orlando over the next three days.

The options that have an impact on businesses may include a potential cut to the corporate income tax, which is favorable to big businesses; an increase in the exemption level that would help small businesses; a trim to cell phone and cable service fees; and an expansion of the sales holiday tax.

Business owners and managers in Broward and Palm Beach counties said Monday there are plenty of tax-cut ideas, as well as tax incentives, that could spike job creation and entice more businesses to locate in Florida.

Alan Garey, chief executive of Pompano Beach-based Decimal Engineering, suggests a cut on the personal property tax levied on equipment. While the sales tax on manufacturing equipment purchases was temporarily eliminated in May, businesses continue to pay an annual tax on equipment they every piece of equipment they buy.

"We pay anywhere from $40,000 to $80,000 a year on personal property tax on equipment we purchase," said Garey, who runs a metal fabrication and machine shop. "That's money I could put back in my business and invest in more equipment, which would help the economy," he said.

Those equipment purchases would result in one to two more employees each year to operate the machines, Garey said.

Garey also favors a moratorium on real estate taxes. "They give [economic] incentives for companies coming into the state, but my taxes keep getting raised every year on my property," he said.

Scott Verner, CEO of diabetic-testing equipment manufacturer Nipro Diagnostics in Fort Lauderdale, said he would like to see either the property tax reduced or incentives provided. He suggests no tax for the first and second years after a property purchase, which would encourage new and expanding businesses to buy local property.

Verner said he considers Florida's corporate rate "already reasonable" at 5.5 percent. But he said raising the exemption from corporate tax would help smaller companies expand and startup businesses get off the ground. The 2013 exemption is the first $50,000 worth of taxable income, which lawmakers bumped up from $25,000 in 2012.

Greater Fort Lauderdale Chamber of Commerce president Dan Linblade said while he has heard many options proposed, he cautions legislators about eliminating occupational license fees. He said many people don't realize that revenue helps fund the Greater Fort Lauderdale Alliance, which works to promote the region as a business destination and create jobs.

Steve Levine, chief financial officer for Boca Raton-based Exam Coordinators Network, would like to see a credit to the unemployment tax paid by employers when they do substantial hiring in the state.

"There's no incentive to hire people in Florida," said Levine, whose firm provides medical evaluation services. "We're looking to hire some skilled nurses. But there's no reason why we wouldn't hire those people in other states instead of Florida."

Florida expects to have a budget surplus that could exceed $1 billion by the time lawmakers draft the 2014-15 budget. In August, state-revenue experts upgraded state government's budget picture by more than $400 million for next year, resulting in a bigger-than-expected surplus.

Gov. Scott made a pledge in 2010 to eliminate the corporate income tax, which generates about $2.1 billion a year. But Florida lawmakers have steered away from the massive tax break, which would benefit mostly larger companies.

At least one business owner said he would be willing to pay more taxes personally, if it would benefit Florida as a whole.

"I would pay more taxes if I thought it would improve schools. If the school systems were better, it would encourage people for families to locate to Florida," said Kenneth Lebersfeld, CEO of retailer Capitol Lighting in Boca Raton.